The Role of Social Media In Shaping Gen Z Retail Investors In Tier-2 Cities

Author(s)	Ms. Shreya Gupta, Mr. Parashmani Pandey, Mr. Arijit Ghosh, Prof. Hussain Ahmed
Country	India
Abstract	This research investigates the pivotal role of social media in shaping investment behavior among Gen Z (age 20-21) in tier-2 Indian cities. The study analyzes 178 undergraduate students, examining how social media exposure, psychological factors (particularly FOMO), and behavioral patterns influence investment decisions and financial outcomes. Key findings reveal that 67.4% follow finance-related content on social media, and 48.3% started investing due to SM influence. However, 25.3% experienced financial losses from misleading SM advice. The analysis employs five statistical methodologies—Descriptive Statistics, Likert Scale Analysis, Cross-Tabulation, Chi-Square Tests, and Correlation Analysis—to identify relationships between variables. The most significant finding is the protective effect of verification before investing, which reduces loss rates from 58.3% to 20.1% (66% risk reduction). The study concludes that while social media effectively drives investment action, psychological vulnerabilities (FOMO affecting 62.9% of respondents) and lack of verification protocols create substantial financial risk, particularly among the 20-year-old demographic where investment rates peak at 28.6%.
Keywords	Gen Z, psychological factors, FOMO
Field	Sociology > Banking / Finance
Published In	Volume 8, Issue 4, July-August 2026
Published On	2026-08-14

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